When you think of great customer service, what companies come to mind? Nordstrom Inc., the upscale retailer of apparel, shoes and accessories is frequently praised for its service excellence. There is a widely circulated story about a man who went into the Nordstrom in Anchorage, Alaska, to return a set of tires. The problem was that Nordstrom’s does not and never has sold tires. The customer bought the tires at the store that occupied the same space prior to Nordstrom moving in. However, after some discussion, the Nordstrom store manager allowed the customer to return the tires and refunded his purchase price.
Urban myth? Not according to Nordstrom spokesman Colin Johnson, who said the above is a true story and great example of how far Nordstrom’s employees are willing to go to keep existing customers happy and create relationships with new customers. It speaks to the culture created by Nordstrom that empowers employees to use their good judgment and make decisions on the spot that result in happy customers.
Nordstrom has been intentional in creating a culture that fosters exceptional customer service, and those same practices can be applied across industries, including the green industry. Here are five tips on how to create the same customer-centric culture whether you are selling shoes or sprinklers.
A company’s culture is defined by strongly held and widely shared beliefs that reinforce positive and negative behaviors. These are the bedrock of company culture rather than a set of principles or values hung on an office wall or posted on a website. The intersection of culture and behavior is captured in this quote from education experts Steve Gruenert and Todd Whitaker: “The culture of any organization is shaped by the worst behavior the leader is willing to tolerate.”
When it comes to creating a company culture of service excellence, leaders need to define the behaviors that support this environment and align those behaviors with their business processes. This includes hiring, training, rewarding and recognizing employees who exemplify these behaviors as well as holding them accountable when they don’t.
If your culture isn’t where is should be when it comes to service, don’t despair.
Once you define your desired culture, put together a plan for change. If you aren’t proactively shaping and developing your culture, one will be created organically. It may not be the healthy, customer-centric culture you want!
The Wharton School of Business at the University of Pennsylvania suggests the following five steps for culture change:
This is a change in management effort that requires clear communication and emotional intelligence to influence employees to change. Most importantly, leaders need to model these behaviors on a day-to-day basis.
Using these steps, leaders can develop a culture that fosters service excellence. First identify where your current culture doesn’t support a “customerfirst” approach, align your organizational structure and strategy to support these goals and let your staff know why you are doing this and how they can help. Enlisting the support of your employees as well as having leaders be authentic role models for new, desired service-oriented behaviors will go a long way to making change.
Employee engagement measures how much employees value their company as well as its customers. It is a metric that is closely tied to customer satisfaction. According to the Aberdeen Group, companies that work to actively engage employees have customer loyalty rates 233% higher than those who don’t. Most customers don’t want to go through the hassle of finding another vendor or service provider. A poor customer experience will make them question your company while a great experience from an engaged employee will make customers want to stick around.
Make sure all employees are being heard and engaged, especially frontline employees. These employees are often the face of your organization and the first point of service. When employees are disengaged, they are often not attentive to customers’ needs. This can lead to a poor experience, harm your company reputation and ultimately impact your bottom line.
If culture is defined by the worst behaviors a company tolerates, it can be changed by rewarding the right behaviors. By consistently reinforcing positive service excellence behaviors, employees will emulate these desired traits. In a recent survey by HubSpot, 69% of employees say they would work harder if they were better appreciated. Creating a rewards and recognition program doesn’t have to be a million-dollar campaign. Small gestures, recognition by peers and on-the-spot bonuses can have a big impact.
With a defined culture of service, engaged employees and a solid rewards and recognition program in place, the last piece needed is to hire the right people that uphold your service goals. You can identify the skill sets, both hard and soft skills, that lead to excellent service. Evaluate the employees that are providing the best customer service in your company. What background and character traits do they have that have allowed them to be successful? Ask for their input as you create a profile for hiring.
In addition to being clear on the competencies that make for great service, there are also a host of assessment tools that can provide some objective data about an individual’s character traits and how they are associated with high-quality customer service. Often the best customer service hires come from surprising places. When evaluating candidates, look for service aptitude as well as experience to make the best hire.
Nordstrom is known for empowering employees and creating a culture that allows them to do what is best for customers. As John Nordstrom says, “I know that I won’t be criticized for taking care of a customer. I will only be criticized if I don’t take care of a customer.” Are your customers walking away with the same legendary customer service experience? If so, tell them to let others know. If not, it’s time to remedy the situation.
